A type of strategic business planning that factors into the long-term well-being of an organization and how well it’s positioned for lasting success, future-proofing is important in any business conditions. Having recently endured through a global pandemic and all of the challenges that came along with it, companies across the board are now facing a new set of obstacles.
The persistent labor shortage, inflation, higher business costs and recessionary fears are just some of the high-level issues that these organizations are grappling with as we move into the second quarter of the year. The good news is that there are steps that business leaders and managers can take to set their businesses up for long-term success, despite any roadblocks that may be standing in the way right now.
“Different companies will take unique steps to future-proof their brands and prepare for future events, like global economic shifts and technological advancements,” MasterClass points out. “Future-proofing might include committing to a customer-centric, specific mission statement; incorporating new technologies; building solid partnerships; and seeking feedback from stakeholders.”
4 Steps to Take Now
Here are four steps you can take now to enhance your company’s longevity and ensure that it’s well positioned to leverage emerging opportunities:
1) Know and acknowledge your company’s pain points. This isn’t the time to bury your head in the sand and hope that the recessionary fears fade quickly. Instead, acknowledge any of your firm’s potential weak points and work to shore them up before they turn into real problems. For example, is your business in a cyclical or non-cyclical industry?
The former tend to be impacted by changes in the economy because their profits rely heavily on the health of the economy (e.g., the travel and hospitality sectors). Non-cyclical industries, on the other hand, are less affected by changes in the economy because they fulfill basic needs (e.g., utilities, healthcare and grocery stores).
“Identify how cyclical your business is given its performance post-pandemic, during the pandemic and in more recent quarters,” Jason Tartick writes in “What is future-proofing? 9 ways to future-proof your business in 2023.” “Or, if your business wasn’t around for previous recessions, look at the performance of businesses within your industry as a benchmark.”
2) Analyze past performance. “Analyzing business decisions you made in the past is a great way to come up with a proper strategy for the future,” Tartick writes. “What may have worked for you one year may not work for you another—that’s all a part of evolving as a business.”
You can analyze past business performance by using financial statements to determine the financial health of your business; customer satisfaction to determine how you retain customers; and employee job satisfaction and performance to determine any areas you need to improve upon internally.
“Once you take a good look at how your business has done in the past, it’ll make it easier to build a strategy for the future,” says Tartick, who suggests setting quarterly and annual business goals and developing key performance indicators (KPIs). That way, you’ll always have the metrics you need to support better decision-making in the future.
3) Up your inventory management game. The last few years doled out a lot of hard lessons related to inventory. During the early stages of the pandemic, many organizations were left with empty storerooms and warehouse shelves. Going into 2023, many of the same companies were dealing with overstock situations. Inventory management programs can help companies strike the right balance between resiliency and capital efficiency.
“These programs are a great way to gain assurance of supply while spreading the burden of both financial and physical ownership of the product [in a way] that more closely aligns with actual consumption,” says Luke LeSaffre, chief revenue officer at Fusion Worldwide, which offers inventory management programs to its customers.
“Demand for this service is tremendous,” says LeSaffre, “especially in times like these as inventory continues to build up.”
4) Invest in your team members. A great team can carry a company through tough times and help the organization come out stronger on the other side. “Invest in your talent to create a positive employee experience,” the Association for Talent Development (ATD) advises. “As a result, team members will be happier and more loyal, engaged and productive.”
You can invest in your employees by providing continuous learning opportunities; offering remote and hybrid work options; providing competitive compensation; and upskilling and reskilling employees.
“Upskilling and reskilling your team members will help your organization overcome a skills gap and adapt to a tech-enabled future while also helping your employees grow in their careers,” ATD adds.